Netflix up, Tesla down, S&P500 pressures with US 10-year yield near 5% | MarketTalk: What’s up today? | Swissquote

Show notes

Netflix surprised by a decent rise in subscriber numbers of nearly 9 mio in Q3. The company also announced that it will be raising prices in the US, UK, and France. The combo of more subscribers who will pay a higher monthly fee is a dream come true for investors, who sent the stock price nearly 13% up in after-hours trading Wednesday. Sentiment on the Tesla deck wasn’t as brilliant. Tesla missed both revenue and earnings expectations for Q3 after sales slowed, while the company earned less money by car it sold because it aggressively cut prices to gain market share. ASML announced that its orders slumped the most in Q3 due to a sector-wide slowdown. And Morgan Stanley fell on sluggish results.
Zooming out, expectations for this earnings season are mixed depending on where you get your information from. According to FactSet, the S&P500 companies could eke out a meagre, but a positive 1.3% growth in year-on-year earnings, but Citi’s index of earnings revision posted its fourth straight week of higher downgrades versus upgrades.
The US 10-year yield is now flirting with the 5% psychological mark despite the rising tensions in the Middle East as Biden’s visit to Israel only made things worse after the Gaza hospital blast. A move in the US 10-year yield above the 5% mark will certainly increase the selling pressure in the S&P500 in the middle of the earnings season – regardless of how good or bad the results are.
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